Work

Company cars and household car choices

Year: 2024

Type: article

Abstract: Tax systems that favour company cars for personal use could cause households to have more cars. It could also affect the technology choice. We investigate the relationship between household car choices and access to a company car through a difference-indifference design using Norwegian microdata. We find that access to a company car is associated with an increase in the total number of cars and in the number of combustion-engine cars. For electric cars, the results are inconclusive. However, wage growth and access to company cars are also positively correlated. Therefore, we cannot interpret the difference in number of cars between the treatment and control group as a causal effect of the company car scheme, but as correlations. Still, existing evidence on the income elasticity of car demand suggests that the increase in the number of cars is unlikely to be driven by wage growth alone.

Source: Transportation Research Part D Transport and Environment

DOI: 10.1016/j.trd.2024.104384

Authors: Gøril L. Andreassen, Askill Harkjerr Halse

Institutions: Institute of Transport Economics, Norwegian University of Life Sciences

Language: English

Topic: Energy, Environment, and Transportation Policies

Subfield: Renewable Energy, Sustainability and the Environment

Field: Energy

Domain: Physical Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,100